State officials have rejected a complaint by the Northern Pass hydro-electric project that it should have been allowed to buy land near the Balsams resort. NHPR’s Chris Jensen reports.

Earlier this month the Tillotson Corp. agreed to sell a conservation easement on about 5,800 acres and a right-of-way to the Society for The Protection of New Hampshire Forests.

The selling price was $850,000.

That prompted Northern Pass to complain to the attorney general’s charitable trust section.

Northern Pass argued its offer of about $2.2 million should have been accepted instead.

Northern Pass argued Tillotson failed in its fiduciary responsibility. It asked state officials to reject the deal.

But late Friday the charitable trust section said Tillotson was within its right to take less money because it thought the deal was “in the best interest of the environment and economy of the North Country.”

The forest society still has to raise the $850,000.

If that deal falls through Northern Pass has offered $850,000 for the easement.